Question about Stimulus Check

[kpopjunkie96]

Recently, I filed my taxes in February. Last year I was in school for 5 months and my parents claim my student loans but they haven't filed yet. I forgot to hit dependent on my tax return and put off the amendment because I was constantly forgetting to. Recently, I received the stimulus check when I know I shouldn't have because technically I'm a dependent. Will I get in trouble for receiving this money? Do I need to return it to the IRS? I've tried reaching out the the IRS to fix this matter but of course, no one is there. If anyone can help me on this matter, i'd sure appreciate it!

[GiseleD]

Congress has not included any provisions in the CARES Act to clawback (reclaim) any stimulus payments that were sent in error. The stimulus is actually an advance on a credit on the 2020 return, but there are no plans to make people pay pack the stimulus checks. If you are concerned, you can always put the money in a savings account while we await guidance from the IRS on these erroneous payments from the IRS. 

[NCperson]

for 2019, are you sure you are a dependent of your parents? Describe your situation a little more? Age? Full time Student or are you working? did you make more or less than $4200 in 2019? did you live at home or on your own? Who supported you more than 50% of room, board, medical, insurance, car, etc.  You or your parents? 

think about 2020.... are you going to be a dependent of your parents? or are you old enough and out of school that you are not eligible for your parents to claim you? 

what is not well advertised is that these payments are really an ESTIMATE for 2020 using 2018 and 2019 data to determine the rebates.  2020 will be used as the ACTUAL.  So if you are actually not a dependent in 2020 you are eligible for the $1200 stimulus, even though you were a dependent in 2018 and 2019.  

[kpopjunkie96]

Im 2019, I was a 22 year old full time college student for 5 months. I made 13,000 last year. While I was in school they supported 50% and then after I graduated, it switched. I just want to give the money back and fix my tax return.

So, are you saying that even if im dependent on someone's 2019 taxes, I'll be eligible for the stimulus check in 2020? I thought these were just a one time thing?

I have a lot of questions!

[NCperson]

@kpopjunkie96 - YES - that is exactly right.  it hasn't been discussed too much in the press but these stimulus payments are REALLY based on your 2020 tax status.  2018 and 2019 were just used as a way to estimate it.  is a one time thing, but based on 2020! Look at the CARES ACT below, it doesn't say anything about 2018 / 2019 - it says 'the taxable year beginning in 2020'! 

here is the line from the CARES ACT: 

‘‘SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.
‘‘(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—

(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
an amount equal to the product of $500 multiplied by the number of qualifying children
(within the meaning of section 24(c)) of the tax payer.

and here is one article from a reputable source that discusses 2020.

https://www.businessinsider.com/personal-finance/will-we-have-to-pay-back-stimulus-check-2020-4

suggest just putting the money to the side and not spending it for the time being if you are nervous  Once the fall comes about it'll be more apparent from articles in the press how this will really work.  The IRS centers are all closed at the moment in any event, 

[kpopjunkie96]

So hold onto the money until I can contact someone at the IRS about it? I don't want to get in any trouble and neither do my parents so my plan was to hold onto it anyway. I should have made the amendment but you live and learn!

[NCperson]

you won't get into trouble.  As I stated, the money is going to be yours in the end. read my post closely.  I specifically referenced the actual law and a news article so you could trust something other than a nameless person on a community board.

there is no one to call at the IRS because their call centers are closed due to the pandemic.

show all this to your parents and discuss,  

[kpopjunkie96]

Hello! Back again with some questions, 2 weeks later. Do we know if the IRS is open and can I call someone? My parents have been pressuring me to find answers for weeks and keep saying I'm still committing tax fraud (my dad claims my student loans on their taxes which havent been filed). Im sorry if Im repeating myself but I want to just get this fixed!